The spot where Jimi Hendrix, Elton John and the Rolling Stones made music during the 1960s and 1970s is set to become part of a new shopping and leisure destination with room for 800-seat underground auditorium.

The site on Denmark Street, also known as the British Tin Pan Alley, is part of a redevelopment being planned in the St Giles area near Tottenham Court Road.

As part of the development Denmark Street will be refurbished and more music shops will be signed up to reinstate it as London’s “home of music”. Kirschel’s Consolidated Developments pieced together ownership of the area over the past 17 years but his plans were delayed due to the prospect of Crossrail.

The St Giles Circus scheme will include a new gallery, shops, restaurants, a hotel, bars, and offices.